HectoFinancial Q2 Operating Profit 3.6 Billion Won... "Up 18.7% YoY"

Global fintech company Hecto Financial announced on the 8th through a preliminary earnings report that it recorded consolidated sales of 38.1 billion KRW, operating profit of 3.6 billion KRW, and net profit of 4.0 billion KRW for the second quarter. Sales decreased by 1% compared to the previous year, but operating profit increased by 18.7%, and net profit rose by 38.4%.

The growth in operating profit is attributed to efforts to improve profitability, including expanding the proportion of high-margin payment method services, cost efficiency such as advertising expenses, and reducing operating losses of subsidiaries. Additionally, net profit increased by 38.4% year-on-year due to increased revenue related to new overseas services.

Choi Jongwon, CEO of Hecto Financial, said, “The results of our efforts to increase the proportion of more profitable services rather than just increasing sales have led to improved operating profit in the second quarter following the first quarter.” He added, “We are especially focusing on expanding the service of ‘Naetongjang Payment,’ a simple cash payment service based on our own members.” He continued, “Hecto Financial plans to continue growing sustainably by contributing to creating a ‘convenient financial environment,’ such as providing one-stop settlement services for overseas platforms.”

Hecto Financial is the number one account-based payment service company in Korea and the only fintech company in the country that owns the source of all payment methods. It primarily provides PG services offering major payment methods including simple cash payments, credit cards, and mobile payments, as well as overseas settlement services.

In particular, due to its ability to handle large volumes of account traffic and offer various payment methods, it is attracting market attention ahead of the September 15 enforcement of the revised “Electronic Financial Transactions Act and Enforcement Decree,” which adds strengthened supervision of prepaid recharge funds and mandatory PG registration for main merchants.